Why tax cuts now?
The economy today is strong, unemployment is at a record low, 4.1 percent and corporate profits are at an all-time high.
The recently released Paradise Papers show that US corporations have stashed billions of dollars in offshore tax havens.
The Republican tax bill will create new loopholes allowing corporations to stockpile trillions of more dollars for their CEOs and stockholders.
The tax bill has built-in incentives to push corporations to move their earnings into foreign “subsidiaries” to avoid taxes. The budget and tax bill will reduce spending for Medicaid, Medicare and social programs while giving $1.9 trillion to corporations and the wealthy. The wealthy will benefit from the end of the alternative minimum tax, ending the estate tax, providing preferential rates for investment and “pass-through” income. Currently, 1 percent of the population owns 50 percent of the world’s wealth. Why the tax cuts now? Huge donors who helped to put the Republicans into power want their payback.
The 20 largest donors to the Trump PAC raised 15 percent of all the funds raised in the 2016 presidential campaign. The tax bill will benefit wealthy members of the administration, Betsy De Vos, Wilber Ross and Trump himself. It will not benefit us.